Punjab Tractors

Corporate details:

Punjab Tractors Limited merged with Mahindra and Mahindra in February 2009 and is now part of the Mahindra FES and is known as Swaraj Division. The company was established in 1970 when the Punjab Government took over the design of the Swaraj tractor.

The Swaraj Tractor was designed and developed with indigenous know-how in 1965 by the Government of India research institute - Central Mechanical Engineering Research Institute, Durgapur in West Bengal. It was the country's first large-scale indigenous project. Punjab Tractors or Swaraj Tractors exports tractors to numerous countries including US.

There are nine models of tractors manufactured by the company and numerous models of combine harvesters. The company has manufacturing units in Nabha of Patiala District, Punjab, Asron Village of Nawanshahar District and Mohali District. Swaraj Tractor is currently occupying the No. 2 spot after Mahindra tractor in India. It has sold over 8, 00,000 lakhs tractors and is the third largest tractor manufacturer in the country.

Some popular models under Swaraj brand are SWARAJ 744, SWARAJ 724, SWARAJ 855, SWARAJ 939, SWARAJ 978, SWARAJ 834, SWARAJ 733, SWARAJ 735 and SWARAJ 722. The company also manufactures combines and forklifts. These are assembled in the Mohali plant.

In mid 2003, a private equity firm, Actis Capital bought 29% of Punjab Tractors from the Punjab Government. Mahindra and Mahindra acquired 43% stake in Punjab Tractors Ltd in March 2007. This has increased M&M's domestic tractor market share from 30% to 40%. The 43% stake also includes the 14.2% share by the Delhi-based Burman family. Mahindra increased its share in Punjab to 64.6% in July 2007.

With the acquisition of the stake by M&M, Punjab Tractors has now access to the international market which was previously not there. They can now sell their tractors through a Mahindra US subsidiary. It also sells its tractors to South East Asia, Australia, Canada and other African countries.

The main business of Punjab Tractors is assembling, marketing and servicing of tractors. The company also manufactures rice trans-planters, spare parts, gears, forklifts, harvesters, self propelled combine tractor agricultural implements, casting and accessories.

It has an installed capacity of 60,000 harvest combines and tractors, 10,000 castings, 300 forklifts. Swaraj Tractors has now four divisions with 443 dealers and is currently employing 2202 staffs. The company is well known by farmers in northern India.